Discounted Cash Flow (DCF) Analysis Unlevered

The Charles Schwab Corporation (SCHW)

$67.83

+1.36 (+2.05%)
All numbers are in Millions, Currency in USD
Stock DCF: -829.11 | 67.83 | overvalue

Operating Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 10,72111,69118,52020,76225,52132,059.9740,274.3450,593.4063,556.3979,840.75
Revenue (%)
EBITDA 5,1974,9048,87712,18110,61615,300.3319,220.5724,145.2530,331.7238,103.28
EBITDA (%)
EBIT 4,8484,3007,71310,9339,27813,635.7517,129.4921,518.3927,031.8133,957.87
EBIT (%)
Depreciation 3496041,1641,2481,3381,664.582,091.082,626.863,299.914,145.41
Depreciation (%)

Balance Sheet Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Total Cash 90,722377,748453,029188,06667,577493,343.79619,747.89778,539.12978,015.691,228,601.98
Total Cash (%)
Account Receivables 23,14667,94795,29271,24173,568124,586.10156,507.43196,607.62246,982.24310,263.81
Account Receivables (%)
Inventories 63,946143,790199,120142,680228,971.54287,638.42361,336.87453,918.27570,220.80716,322.25
Inventories (%)
Accounts Payable 39,200104,201125,67197,43884,786175,498.12220,464.08276,951.19347,911.36437,052.89
Accounts Payable (%)
Capital Expenditure -708-631-916-971-700-1,562.40-1,962.72-2,465.60-3,097.34-3,890.93
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 67.83
Beta 0.996
Diluted Shares Outstanding 1,831
Cost of Debt
Tax Rate 20.56
After-tax Cost of Debt 3.85%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.912
Total Debt 59,973
Total Equity 124,196.73
Total Capital 184,169.73
Debt Weighting 32.56
Equity Weighting 67.44
Wacc

Build Up Free Cash

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 10,72111,69118,52020,76225,52132,059.9740,274.3450,593.4063,556.3979,840.75
EBITDA 5,1974,9048,87712,18110,61615,300.3319,220.5724,145.2530,331.7238,103.28
EBIT 4,8484,3007,71310,9339,27813,635.7517,129.4921,518.3927,031.8133,957.87
Tax Rate 23.60%23.28%24.09%23.49%20.56%23.00%23.00%23.00%23.00%23.00%
EBIAT 3,7043,2995,8558,365.127,370.9010,499.3113,189.4316,568.8120,814.0626,147.01
Depreciation 3496041,1641,2481,3381,664.582,091.082,626.863,299.914,145.41
Accounts Receivable --44,801-27,34524,051-2,327-51,018.10-31,921.33-40,100.19-50,374.62-63,281.56
Inventories --79,844-55,33056,440-86,291.54-58,666.88-73,698.45-92,581.40-116,302.52-146,101.45
Accounts Payable -65,00121,470-28,233-12,65290,712.1244,965.9756,487.1070,960.1889,141.53
Capital Expenditure -708-631-916-971-700-1,562.40-1,962.72-2,465.60-3,097.34-3,890.93
UFCF 3,345-56,372-55,10260,900.12-93,261.64-8,371.37-47,336.03-59,464.42-74,700.34-93,839.99
WACC
PV UFCF -7,804.74-41,144.92-48,188.55-56,437.97-66,099.63
SUM PV UFCF -219,675.81

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.26
Free cash flow (t + 1) -95,716.79
Terminal Value -1,819,710.88
Present Value of Terminal Value -1,281,779.82

Intrinsic Value

Enterprise Value -1,501,455.63
Net Debt 16,636
Equity Value -1,518,091.63
Shares Outstanding 1,831
Equity Value Per Share -829.11